Manufacturing Execution System Market Size
| Study Period | 2019 - 2029 |
| Base Year For Estimation | 2023 |
| CAGR | 10.10 % |
| Fastest Growing Market | Asia Pacific |
| Largest Market | North America |
| Market Concentration | Medium |
Major Players
*Disclaimer: Major Players sorted in no particular order |
Manufacturing Execution System Market Analysis
The MES Market size is expected to grow from USD 14.87 billion in 2023 to USD 24.06 billion by 2028, at a CAGR of 10.10% during the forecast period (2023-2028).
With the growing adoption of Industry 4.0 and the Industrial Internet of Things (IIoT) in plants, the agility and interoperability of the Manufacturing Execution System (MES) have become even more strategic for managing additional complexity and future-proof businesses.
- The increasing shift towards production orders, process steps, and instructions and documentation, with information being pulled directly from ERP and other enterprise business systems, is driving the adoption of manufacturing execution systems. Furthermore, in recent years, driven by labour shortages and enabled by more automated machining systems, MESs have been picked up by multiple end-use manufacturers to compensate them, which has benefitted market growth and is expected to increase over the forecast period.
- Increasing development by major players in order to raise awareness and knowledge regarding MES solutions is expected to contribute to market growth. For instance, in July 2022, Insequence announced a novel user certification training program for SPD Pro and its Manufacturing Management System. This new curriculum from Insequence University Software gives power-user level information to Insequence clients to help develop an in-house understanding of Insequence products. This might lead to increased efficiency, competence, and cost savings.
- The market growth is being constrained by reasons including SMEs' lack of understanding of the advantages of MES. Additionally, it is predicted that slow development would occur throughout the projection period due to high operating and investment expenses associated with deploying and updating industrial execution technologies for small-scale production.
- Multiple end industry activities, including those in the power generation, oil and gas, and automotive sectors, saw significant transformation during the post-pandemic period. The substantial labor and distribution network issues that led to the development of manufacturing operational system solutions have begun to be resolved in the manufacturing sectors. The growth of the process and discrete sectors is likely to increase demand for MES technologies. The need for manufacturing execution solutions will expand during the projected period due to several COVID-19 operations and recommendations that have been established for easier operations.
Manufacturing Execution System Market Trends
Pharmaceutical and Life Sciences Industry to Hold Significant Share
- With the continuously evolving trends in the pharmaceutical industry, manufacturers are experiencing increased pressure to keep pace and modify their operations to meet changing needs. MES enables the pharmaceutical industry to reduce production costs and improve compliance with regulatory requirements significantly.
- The benefits of automating have been effectively used by pharmaceutical businesses to sustain or grow output without sacrificing safety or efficiency. Pharmaceutical businesses can now securely increase production and construct manufacturing lines more quickly and flexibly owing to automation and deployment of solutions such as manufacturing execution systems. Pre-existing trends like adaptable automation, digitization, batch manufacturing, and personalization have been amplified by the COVID-19 pandemic.
- Increasing development by the companies operating in the sector is expected to contribute to market growth. Honeywell purchased Performix Inc. in September 2021 for an unknown sum. Honeywell is a US-based provider of modular technologies for life science operational productivity, safety, and technological innovations. With this acquirement, Honeywell is pursuing a strategy to build the best-integrated application framework globally for clients in the life sciences business sector, with the possibility to increase manufacturing throughout, improve dependability, and accelerate adherence while preserving the maximum standards of performance. Manufacturing execution system (MES) technology is provided by Performix Inc., a Huston-based business, to the biotechnology and pharmaceutical sectors.
- Moreover, the growing concern about counterfeit drugs entering the supply chain has resulted in the adoption of global track and trace regulations to protect patient safety and ensure product integrity. The EU Falsified Medicine Directive (EUFMD), the US Drug Supply Chain Security Act (DSCSA), and other global regulations mean that manufacturers are now trying to ensure compliance, add innovative technologies, and increase the resources to manage the additional administrative burden. The use of barcodes, serialization numbers, and the incorporation of RFID tags inside the packaging equipment are all measures being taken to improve the quality of traceability and tracking.
North America to Hold Major Share
- North America is expected to continue to hold a significant share of the MES market over the forecast period, majorly due to the presence of several significant MES vendors, such as Honeywell (United States), Oracle Corporation (United States), Emerson (United States), and Rockwell Automation (United States) among others which drive innovation.
- North America's market leadership is also linked to increased industrial development in these regions. In advanced nations, factory execution systems' most prevalent application segments include automotive, oil and gas, and food and beverages. For instance, according to U.S. Energy Information Administration, U.S. crude oil extraction will average 11.7 million barrels per day in 2022 and 12.4 million barrels per day in 2023, exceeding the record high achieved in 2019.
- Furthermore, North American nations embrace cloud manufacturing solutions because of the rapid implementation of cloud-based networking and enterprises employing cutting-edge digital technology. The industry for cloud manufacturing implementation systems in North America is anticipated to be fuelled by efforts of government organizations, among which some are shifting online to improve information operations and by increased internet adoption.
- One of the market's potential prospects is the region's ongoing industry-wide expansions and expenditures in digitalization. The expansion of the IoT market in the regional manufacturing sector is aided by SMEs' growth and the increased digitalization of manufacturing operations by big companies like IBM and General Electric. Small and medium-sized businesses (SMEs) are becoming more adaptable in integrating new technologies with their current systems, whereas major manufacturers have considerable funds for digitization. This makes EMS adoption possible.
Manufacturing Execution System Industry Overview
The MES market is significantly fragmented. Leading MES vendors continue to enhance and extend core capabilities and expand the breadth of their application footprints, adding MOM capability and hosting and licensing options. Enterprise vendors leverage their application breadth and platform expertise to make MES part of a digital thread. Some of the key players operating in the market include Siemens AG, Rockwell Automation, SAP SE, ABB Ltd., and Honeywell International Inc.
In October 2022, Pico MES, a manufacturing execution system (MES) technology business focusing on the automation of essential production activities for small to medium-sized enterprises, announced the addition of a novel alert function to its next-generation MES technology. The innovative new tool enables operators to deliver rapid notifications via autonomous emails, text, and/or messaging, as well as Microsoft Teams and Slack. To handle difficulties that arise during a production shift, alarm signals are delivered to the supervisor, manufacturing engineers, and/or quality management.
Also in October 2022, Vayo Technology held the online unveiling of their innovative DFX Execution System. DFX Execution System is an advanced DFX analysis software application developed for major OEM/EMS firms to do DFX analysis in order to assure high-quality PCB/PCBA layout.
Manufacturing Execution System Market Leaders
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Siemens AG
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Rockwell Automation
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SAP SE
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ABB Ltd.
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Honeywell International Inc.
*Disclaimer: Major Players sorted in no particular order
Manufacturing Execution System Market News
- May 2022 : SymphonyAI Industrial launched its artificial intelligence (AI) integrated MOM 360 manufacturing operations control solution, which includes integrated factory execution systems (MES) features, enterprise-level administration, and AI-based process improvement. MOM 360 is intended to assist businesses in achieving the Industry 4.0 intelligent manufacturing objectives of data-driven optimization at the enterprise scale.
- May 2022 : Critical Manufacturing, a supplier of Manufacturing Execution Systems (MES) for Intelligent Production and Industry 4.0, has revealed the introduction of version nine (V9). The latest iteration supports constantly evolving business landscapes with more scalable deployment topologies, quicker revision handling, robust data management capabilities, and solid security.
Manufacturing Execution System Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET DYNAMICS
4.1 Market Overview
4.2 Market Drivers
4.2.1 Adoption of Digitisation to Improve Production
4.2.2 Introduction of Cloud Technology to Consolidate Information
4.3 Market Restraints
4.3.1 High Investment and Running Costs Involved in Implementation and Upgrade of Manufacturing Execution Systems for Small-Scale Production
4.3.2 Lack of Awareness Regarding Benefits of MES Solutions Among SMEs
4.4 Industry Attractiveness - Porter's Five Force Analysis
4.4.1 Bargaining Power of Suppliers
4.4.2 Bargaining Power of Buyers/Consumers
4.4.3 Threat of New Entrants
4.4.4 Threat of Substitute Products
4.4.5 Intensity of Competitive Rivalry
5. MARKET SEGMENTATION
5.1 By Offering
5.1.1 Software
5.1.2 Service
5.2 By Deployment
5.2.1 On-premise
5.2.2 Cloud
5.3 By End-user Industry
5.3.1 Food & Beverage
5.3.2 Oil & Gas
5.3.3 Pharmaceutical & Lifesciences
5.3.4 Automotive
5.3.5 Electronics & Semiconductor
5.3.6 Other End-user Industries
5.4 Geography
5.4.1 North America
5.4.2 Europe
5.4.3 Asia-Pacific
5.4.4 Rest of World
6. COMPETITIVE LANDSCAPE
6.1 Company Profiles
6.1.1 Siemens AG
6.1.2 Rockwell Automation
6.1.3 SAP SE
6.1.4 ABB Ltd.
6.1.5 Honeywell International Inc.
6.1.6 Dassault Systemes S.A.
6.1.7 AVEVA Group PLC
6.1.8 Applied Materials Inc.
6.1.9 Oracle Corporation
6.1.10 General Electric Company
6.1.11 Emerson Electric Co.
6.1.12 Epicor Software Corporation
- *List Not Exhaustive
7. INVESTMENT ANALYSIS
8. MARKET OPPORTUNITIES AND FUTURE TRENDS
Manufacturing Execution System Industry Segmentation
Manufacturing Execution Systems (MESs) are the information systems that connect, monitor, and control complex manufacturing systems and all the relevant data flows on the factory floor. The main goal of an MES is to ensure the effective execution of all manufacturing operations and improve production output. The manufacturing execution systems market is segmented by Software and Service Offerings, On-premise and Cloud deployment, End-user Industry, including Food & Beverage, Pharmaceutical & Lifesciences, Oil & Gas, among others, and Geography (North America, Europe, Asia-Pacific, and Rest of World). The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Offering | |
| Software | |
| Service |
| By Deployment | |
| On-premise | |
| Cloud |
| By End-user Industry | |
| Food & Beverage | |
| Oil & Gas | |
| Pharmaceutical & Lifesciences | |
| Automotive | |
| Electronics & Semiconductor | |
| Other End-user Industries |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Rest of World |
Manufacturing Execution System Market Research FAQs
What is the current MES Market size?
The MES Market is projected to register a CAGR of 10.10% during the forecast period (2024-2029)
Who are the key players in MES Market?
Siemens AG, Rockwell Automation, SAP SE, ABB Ltd. and Honeywell International Inc. are the major companies operating in the MES Market.
Which is the fastest growing region in MES Market?
Asia Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in MES Market?
In 2024, the North America accounts for the largest market share in MES Market.
What years does this MES Market cover?
The report covers the MES Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the MES Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
What is the future outlook for the Manufacturing Execution Systems (MES) Market?
The Manufacturing Execution Systems (MES) Market is expected to grow significantly due to increasing demand for automation and data-driven decision-making in manufacturing industries, along with technological advancements in Artificial Intelligence and the Internet of Things.
What are the challenges in implementing a Manufacturing Execution Systems (MES) Market?
Challenges faced by the Manufacturing Execution Systems (MES) Market are a) High initial investment costs b) Complexity in integrating with existing systems c) Managing change among the workforce d) Selecting the right MES solution that fits specific operational needs
Manufacturing Execution System Industry Report
The global manufacturing execution systems (MES) market is poised for significant expansion, driven by the increasing complexity of manufacturing processes and the need for enhanced operational efficiency across various industries. Key sectors such as pharmaceuticals and life sciences are adopting MES to comply with stringent regulations and boost production efficiency. Similarly, discrete industries like automotive and aerospace are leveraging MES for better traceability, quality control, and customization.
The Asia Pacific region, particularly China and India, is expected to witness the highest growth due to rapid industrialization and the adoption of Industry 4.0 technologies. While on-premises deployment currently dominates the market, offering greater security and control over manufacturing data, cloud-based solutions are gaining popularity for their scalability and flexibility. The integration of advanced technologies such as IoT, AI, and robotics is further propelling the growth of the MES market, helping industries maintain competitiveness in complex market scenarios.
Industry reports indicate that the market overview highlights the substantial growth rate of MES adoption. Market analysis reveals that the global market is expanding, with market research emphasizing the importance of market trends and market growth. The industry analysis provides insights into the market forecast, underscoring the significance of market leaders in driving innovation. The market report offers a comprehensive market size evaluation, supported by detailed industry research and industry information.
The industry outlook and market data suggest a positive trajectory for MES, with market segmentation providing a clear view of market value and market predictions. The market review underscores the dynamic nature of the industry, while industry statistics and industry trends highlight the evolving landscape. For further insights, a report PDF download is available, offering a detailed report example and market outlook. Research companies continue to play a crucial role in providing accurate and up-to-date market information.
MES Market Report Snapshots
